IIA IIA-CIA-PART3 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 1221:

  Which of the following is an indicator of robust cost control of a project?

  A. The budget of the project has been compiled and approved.
  B. The project costs are precisely within the planned budget.
  C. Positive and negative variances are researched and explained.
  D. Cost estimates are allocated to specific activities correctly.
  C. Positive and negative variances are researched and explained.

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  Explanation

• Question 1222:

  Which of the following characteristics is a strength of group decision making?

  A. Group decision making is quicker than individual decision making.
  B. More information can be processed by the group than by an individual.
  C. It is less costly to have decisions made by groups than by an individual.
  D. Group decision making leads to the selection of the most appropriate alternative.
  B. More information can be processed by the group than by an individual.

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  Explanation

  The advantages of group decision making are that the group will have broader experience, greater expertise, a wider range of perspectives, and a greater capacity for absorbing facts than an individual. The exchange of viewpoints within the group may provide more illumination of the problem than could be achieved by one person.

• Question 1223:

  Which of the following dimensions relates to the quality of big data?

  A. Veracity
  B. Validity
  C. Value
  D. Variety
  A. Veracity

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  Explanation

• Question 1224:

  According to UA guidance on IT, at which of the following stages of the project life cycle would the project manager most likely address the need to coordinate project resources?

  A. Initiation.
  B. Planning.
  C. Execution.
  D. Monitoring.
  C. Execution.

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  Explanation

  Understanding Resource Coordination in Project Management:

  Resource coordination involves assigning and managing human, financial, and technological resources to ensure the project runs smoothly.

  The Execution phase is when project plans are implemented, and resources are actively utilized.

  Why Execution?

  During execution, the project manager must coordinate resources, monitor performance, and resolve conflicts to keep the project on track.

  This phase involves managing teams, distributing tasks, and ensuring resources are used efficiently .

  Why Other Options Are Incorrect:

  Option A: Initiation: Focuses on defining project objectives, scope, and feasibility but does not involve active resource coordination.

  Option B: Planning: Deals with creating resource allocation plans but does not handle real-time coordination.

  Option D: Monitoring: Involves tracking performance and making adjustments but does not actively assign or manage resources.

  IIA Standards and References:

  IIA Practice Guide: Auditing Project Management (2020): Recommends evaluating resource management practices during the execution phase. IIA Standard 2110 - Governance: Internal auditors should ensure project resources are

  managed effectively to achieve objectives.

  PMBOK Guide - Project Resource Management: Specifies that resource coordination primarily happens in the execution phase.

• Question 1225:

  When executive compensation is based on the organization's financial results, which of the following situations is most likely to arise?

  A. The organization reports inappropriate estimates and accruals due to poor accounting controls.
  B. The organization uses an unreliable process for gathering and reporting executive compensation data.
  C. The organization experiences increasing discontent of employees, if executives are eligible for compensation amounts that are deemed unreasonable.
  D. The organization encourages employee behavior that is inconsistent with the interests of relevant stakeholders.
  C. The organization experiences increasing discontent of employees, if executives are eligible for compensation amounts that are deemed unreasonable.

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  Explanation

• Question 1226:

  If a supervisor uses a supportive management approach, evidenced by positive feelings and concern for subordinates, a problem might result because:

  A. An approach based on pure power makes it difficult to motivate staff.
  B. This approach depends on material rewards for the worker.
  C. This approach depends on people who want to work, grow, and achieve.
  D. The manager must believe in the teamwork approach.
  C. This approach depends on people who want to work, grow, and achieve.

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  Explanation

  Supportive management techniques orient workers toward performance rather than obedience or happiness. The leader should have positive feelings for his or her employees and should attempt to encourage participation and involvement. This approach is effective when used with employees who are motivated to work, improve themselves and their abilities, and accomplish goals.

• Question 1227:

  An organization moving its sales conversion rate from 5% to 12% indicates which of the following?

  A. Worse sales activity.
  B. Better inventory usage.
  C. Better sales activity.
  D. Worse inventory usage.
  C. Better sales activity.

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  Explanation

• Question 1228:

  Which of the following is the starting point for a chief audit executive to prioritize engagements to be included in the internal audit plan?

  A. A risk management maturity model
  B. A risk matrix
  C. An annual assurance map
  D. An internal control framework
  B. A risk matrix

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  Explanation

  The CAE must prioritize engagements based on risk assessment. A risk matrix (considering likelihood and impact of risks) provides the starting point to evaluate which areas of the audit universe present the highest exposure and should be

  included in the plan.

  Option A (maturity model) helps evaluate risk management capability but is not the starting point. Option C (assurance map) supports coordination but follows the risk assessment. Option D (control framework) provides criteria but not

  prioritization.

  IIA Standards - Standard 2010: Planning.

• Question 1229:

  Of the major processes affecting the evolution of an industry, which one affects rivalry, entry, expansion, and supply?

  A. Long-run changes in the industry growth rate.
  B. Changes in input costs.
  C. Structural changes in suppliers' and customers' industries.
  D. Government policies.
  A. Long-run changes in the industry growth rate.

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  Explanation

  Long-run changes in the industry growth rate affect rivalry, entry, expansion, and supply. These changes occur because of changes in five external factors:demographic traits (such as consumer ages and income levels), trends in needs of buyers (caused by changes in regulation, tastes,lifestyles), relative positions of substitute and complementary products, sales to new customers (market penetration), and product innovation, an internal factor, alters the industry's position regarding the external factors.

• Question 1230:

  According to IIA guidance on IT, which of the following best describes a situation where data backup plans exist to ensure that critical data can be restored at some point in the future, but recovery and restore processes have not been defined?

  A. Hot recovery plan.
  B. Warm recovery plan.
  C. Cold recovery plan.
  D. Absence of recovery plan.
  D. Absence of recovery plan.

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  Explanation